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QuickBooks Study Guide Questions 1-150 (Parts
1-3) questions with correct answers
Why would you hide or collapse sub accounts on a report? Correct Answer-D.) To temporarily hide unnecessary details and hide parent accounts What should you do after you click Save and Close on a Customer Credit Memo? Correct Answer-D.) Choose between retained as an available credit, give a refund or apply to an invoice Which of the following can be memorized in QuickBooks? Correct Answer-A.) Checks Which is NOT shown on the Payroll Summary Report in QuickBooks? Correct Answer-A.) Information necessary to complete your state unemployment tax form The bank notified you that a customer's check you deposited has bounced. The customer did not have sufficient funds to cover the check. What should you do? Correct Answer-B.) Record a transaction to show the customer owes you the money and that the checking balance has decreased by that same amount. Suppose you always want all reports to show a specific size and color, how do you set the standard or preference in QuickBooks so you don't have to customize each report? Correct Answer-D.) Click the edit menu and select preferences then click the reports and graphs group to set your report preferences. Suppose you want to restrict which users can access customer credit card numbers. How do you do this? Correct Answer-B.) Give the user access to sales and accounts receivable but do not check the complete credit card numbers.
Which of the following is a possible reason for a bank reconciliation discrepancy? Correct Answer-B.) The beginning balance calculated by QuickBooks does not match last months ending phase. Which of the following statements is true regarding undeposited funds? Correct Answer-D.) It is an account used to record payments before you make a deposit Which accounts are affected when you enter Time in QuickBooks? Correct Answer-D.) Accounts Receivable Workers who require a W2 tax form at the end of the year should be added to which of the following lists? Correct Answer-A.) Employees If you have a customized report that you use each month,which feature lets you run the report with updated data each month? Correct Answer-B.) Memorize Report What is the primary reason for setting a closing date in QuickBooks? Correct Answer-B.) To restrict users from deleting, editing or adding transactions to last year. Your new employee earned an annual salary of $40,000. How do you enter this into QuickBooks? Correct Answer-C.) Enter 40,000 in the payroll info window. What steps must you complete to use the payroll center to pay payroll liabilities? Correct Answer-C.) Set deposit frequencies Name the section of the Balance Sheet. Correct Answer-D.) Assets, Liabilities, and Equity
How can you ensure that invoice detail does not appear on a customer statement? Correct Answer-A.) Uncheck the show invoice item detail on statement's box in the create statements window. What is the purpose of backing up in QuickBooks? Correct Answer-A.) To protect against data loss from file corruption or a hard file crash. Which of the following is NOT true regarding merging entries? Correct Answer- B.) QuickBooks allows you to merge an Expense account with an income account When a transaction is changed, what information does the Audit Trail report provide? Correct Answer-D.) All of the above How do you add or delete columns on a report? Correct Answer-C.) Click the modify report and on the display tab check or add or uncheck remove columns When should you use the items tab on a bill or check? Correct Answer-C.) When you purchase inventory parts When you are setting up a service item, what happens if you select the box next to this "service is performed by a subcontractor or partner? Correct Answer-A.) QuickBooks provides fields so you can track purchase and sales information for that item. Which of the following statements is NOT true regarding single user and multi- user mode? Correct Answer-B.) Only the administrator is allowed in the file when it is in single user mode. Which of the form templates cannot be customized in QuickBooks? Correct Answer-A.) Checks
The Product Information window shows you the version and release of QuickBooks you have along with other information about the company file. How do you access the Product Information window? Correct Answer-D.) Press the F key When should you set up a non-inventory item type? Correct Answer-D.) All of the above Which of the following statement is TRUE regarding items? Correct Answer-C.) When you purchase or sell and item, the value of the purchase or sales flows to the account and therefore the financial statement you selected when you set up the item Which report shows how much you owe for sales tax? Correct Answer-C.) Sales Tax Liability Which report is also known as an income statement and summarizes income and expenses for a month? Correct Answer-A.) Profit and Loss Standard When making your payroll tax deposit, how can you add IRS interest and/or penalties? Correct Answer-C.) Recalculate the paycheck at a specific interest rate Which of the following is a reason to create a new company file? Correct Answer- C.) To start over when a company file has many errors that are beyond repair. When you enter a purchase order for inventory, which accounts are affected? Correct Answer-D.) None. Because purchase orders are non-posting transactions
Which of the following statement is TRUE regarding vendor credit memos? Correct Answer-Vendor credit memos increase what owe the vendor. How can you ensure that the invoice detail appear on a customer statement? Correct Answer-Turn on invoice detail in customer statement window. Which of the following is a payroll service available in QuickBooks? Correct Answer-D.) Assisted Payroll How can you open a QuickBooks report in Microsoft Excel? Correct Answer-B.) Click the Export button on the top of any QuickBooks report. For each functional area of QuickBooks Pro and Premier, ie Sales Accounts, Accounts Receivable, Purchases, what levels of access can you grant to users? Correct Answer-B.) You can prohibit access, grant full access or grant selective access; these levels apply to specific transactions in that area. What is the Accountants' copy? Correct Answer-C.) A copy of a company file that allows the accountant to review and make adjustments while you continue to work in QuickBooks. Which of the following information CANNOT be set up during the Easy Step interview? Correct Answer-C.) Trial balance opening balances What 2 steps do you follow to track accounts payable in QuickBooks? Correct Answer-A.) Enter bills, pay bills Which of the following desktop (not online) edition of QuickBooks supports multi- user? Correct Answer-C.) Premier and higher
Which is an example of when to use a non-inventory part? Correct Answer-D.) When you buy and sell an item but don't need to track quantity on hand. How do you hide subaccounts on a report? Correct Answer-D.) Click the collapse button Your company had to return some goods to a vendor. How do you record the vendor credit in QuickBooks? Correct Answer-B.) Enter bill then click credit on top of the bill What do you use to narrow the data QuickBooks displays on a report? Correct Answer-Filter Once the Easy Step Interview is complete, how do you change the company information for the business name, address, or phone number? Correct Answer- Select Company, Company Information from the menu What is the Undeposited Funds account in QuickBooks? Correct Answer-D.) An account used to record payments before you make a deposit. What is the end result of a payroll setup interview? Correct Answer-QuickBooks has an accurate record of employees, earning deductions and payroll history and you are ready to create the first paycheck. You finished entering all the transactions for last year, and just sent the file to the tax preparer. How do you ensure that no one accidently deletes or edits a transaction last year? Correct Answer-Set the closing date and password in the accounting preferences in the company menu.
How do you record debit card transactions in QuickBooks? Correct Answer-Use the write checks window, enter the check and write debit in the check number field. Which is a reason to NOT enter a general journal entry? Correct Answer-To enter transactions in another way instead of using built in forms. The bank notifies you that a customers' check you deposited has bounced. The customer does not have sufficient funds to cover the check. What should you NOT do? Correct Answer-Delete the customer payment from the deposit How do you display a group of reports? Correct Answer-Click the reports menu then select process multiple reports button. Which payroll services allows you to print state tax form? Correct Answer-Basic payroll How do you customize a report, i.e. change the information QuickBooks displays, change the title etc. Correct Answer-Click the modify report button on the report Which of the following elements on the invoice can you NOT customize? Correct Answer-The amount of information you can type in each field A list entry may be deleted only when... Correct Answer-It has no balance; it has not been used and is not linked to anything that has been used Your company provides their employees with sick/vacation hours. You need to track how many hours each employee currently has available, how many they add or accrue and you need to reduce their accrued hours when you pay them for sick or vacation time. How would you do this in QuickBooks? Correct Answer-Click
the vacation button on the employees on the employee setup to define how to accrue time and tell QuickBooks how many hours the employee is available. When you pay an employee for sick/vacation time, click the sick/vacation button and reduce those available hours. When you send a QuickBooks report to Excel, which features allow you to choose what sections of the report to collapse? Correct Answer-Auto outline What is the purpose of an Audit Trail report? Correct Answer-Track any changes and deletions to transactions and track which user makes the changes or the deletion. Which of the following statement is TRUE regarding single user and multi user mode? Correct Answer-To use QuickBooks in multi user mode each user must have the same version of QuickBooks on their computer to have access. What can you do in the report center? Correct Answer-Run most reports in QuickBooks Which of the following transactions CANNOT be memorized? Correct Answer- Bill payment Which of the following can explain why the profit and loss shows a profit but the business owner does not have any money in the bank? Correct Answer-This is the difference between item profitability and job profitability reporting. The company file you are working on is a mess. You decided to start a new file. At the same time you want to keep all the lists and preferences and just delete the transactions. How do you do this? Correct Answer-Click the File menu, choose utilities, clean up company data, then choose default transaction option
Suppose you work for a pet store and have to track the name of each customers' pet. How would you do this in QuickBooks? Correct Answer-Edit custom field to customer data. How do you record a debit card transaction in QuickBooks? Correct Answer-Use the write check window for the check register but type debit in the check number field. The computer that houses your QuickBooks data could crash. What should you do in QuickBooks to make sure you always have access to your data? Correct Answer-Create a backup copy of your company files and store it separately from the computer List entries may be deleted only when: Correct Answer-There is no balance, it has not been used and is not linked to anything that has been used. How do items affect the financial statement? Correct Answer-When you purchase or sell an item the value of the purchase or sell flows to the account you selected when you set up the item You sent a QuickBooks report to excel and made some changes. How do you import the change in excel back to Quickbooks? Correct Answer-Use the import from excel wizard in QuickBooks How do you customize a report? The example; change what information QuickBooks displays, change the title, etc. Correct Answer-Click the customize report button on the report
How do you identify the version of QuickBooks that you have? Correct Answer- Press the F2 key Which is the quickest way in QuickBooks to find an invoice from 6 months ago? Correct Answer-Open an invoice and click the find button How do you hide sub accounts on the report? Correct Answer-Hit the collapse button Which of the following statements is true regarding single user and multi user mode? Correct Answer-To use QuickBooks in multi user mode, each user must have the same version of QuickBooks on their computer to access the same company file Which of the following could explain why a profit and loss show a profit, but the business owner doesn't have any money in the bank? Correct Answer-This is the difference between cash and accrual reporting You have to set up the item for shipping. What item type should you use? Correct Answer-Other charge When should you enter a customer credit memo? Correct Answer-A customer returns a product that was damaged How can you ensure that invoice details do not appear on a customer's statement? Correct Answer-Uncheck the show invoice item detail on statement opinion in the credit create statement window Which of the following elements on an invoice can you not customize? Correct Answer-The amount of information, number of characters you type in each field
What is the Undeposited funds account in QuickBooks? Correct Answer-An account used to record payments before you made a deposit How do you make an item on the item list inactive? Correct Answer-Open the item list, click to select the appropriate item then click the bottom left item button and select, make item inactive. Your company supplies their employees with sick, vacation hours. You need to track how many hours that each employee currently has available, how many they earn, accrued hours when you pay them for sick or vacation time. How would you do this in QuickBooks? Correct Answer-Follow these steps: Click the sick, vacation button in employees setup to define how to approve time and to tell QuickBooks how many hours the employee has available. Setup a sick, vacation wage item to pay employees for sick, vacation time Which payroll service allows you to print state tax forms? Correct Answer- Enhance payroll Which of the following transactions cannot be memorized? Correct Answer-Bill Payment You have finished entering all the transactions for last year and just sent the file to the tax preparer. How do you ensure that no one accidently deletes, edits, or adds transactions to last year? Correct Answer-Set a closing date and password in the accounting preferences or from the company menu How do you make a column on a report wider? Correct Answer-Click the diamond to the right side of the column and drag it to the right
How do you pay, payroll liability in QuickBooks? Correct Answer-Select the payment you want to make form the pay scheduled liability/ select view pay. What is the purpose of the audit trail report? Correct Answer-Track any changes or deletions to transactions as well as track which users make the changes or deletions You accidently entered a customer twice in the customer center with a slightly different spelling. How do you merge these two entries? Correct Answer-Edit the unwanted list entry; change the name to match the name you want to merge into. Click ok, then click yes when prompted to merge names. Your company had to return some goods to a vendor. How do you record the vendor credit in QuickBooks? Correct Answer-Click enter bills then click credit on top of the bill When you setup a new employee, how do you add a payroll deduction such as medical insurance? Correct Answer-In the new edit employee window, click the change tap drop down window, select payroll and compensation information, then add the medical insurance payroll into the addition/deletion and company compensation section. What is the end result of a payroll setup interview? Correct Answer-QuickBooks has an accurate record of employees' earnings and deductions and payroll history and you are ready to create your first paycheck. There are two primary financial statements that summarize the chart of accounts. Which of the following is one of these reports? Correct Answer-Balance sheet
Which of the following form templates cannot be customized in QuickBooks? Correct Answer-Check Which is not a good reason to enter a general journal entry? Correct Answer-To avoid using the built in forms The bank notifies you that a customer's check you have deposited has bounced. The customer did not have sufficient funds to cover the check. What should you not do? Correct Answer-Delete the customer's payment from the deposit How do you change the text in the header/footer report? Correct Answer-Click the customize button on the report and then click the header/footer tab.
